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Bausch + Lomb Corporation (BLCO)
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Bausch + Lomb Corporation (BLCO) AI Stock Analysis

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BLCO

Bausch + Lomb Corporation

(NYSE:BLCO)

Rating:55Neutral
Price Target:
$14.50
▼(-0.62% Downside)
Bausch + Lomb Corporation's overall stock score reflects a balance of positive growth prospects and significant profitability challenges. The raised financial guidance and strong performance in key segments are encouraging, but ongoing losses and cash flow issues weigh heavily. Technical indicators provide some support, but valuation concerns persist due to negative earnings.
Positive Factors
Financial Performance
Bausch + Lomb reported total revenue of $1,278M, representing a 5.1% year-over-year growth, beating the analyst's projection.
Guidance
BLCO raised its FY25 revenue and EBITDA guidance, indicating optimism in overcoming challenges like the enVista recall and tariff headwinds.
Product Sales
Miebo sales were a key growth driver, contributing significantly to overall BLCO growth with strong optimism for continued growth.
Negative Factors
Corporate Structure
Investor interest will be limited until there is more visibility on the separation from Bausch Health.
Market Competition
Miebo and Xiidra together saw a slight decline in their dry eye new prescription share in May, which could indicate increasing competition in the market.
Pricing Pressure
XIIDRA faced gross-to-net pricing pressure, which is believed to persist through the remainder of 2025.

Bausch + Lomb Corporation (BLCO) vs. SPDR S&P 500 ETF (SPY)

Bausch + Lomb Corporation Business Overview & Revenue Model

Company DescriptionBausch + Lomb Corporation operates as an eye health company worldwide. It operates through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. The Vision Care/Consumer Health Care segment provides contact lens that covers the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses; and contact lens care products, over-the-counter eye drops, eye vitamins, and mineral supplements that address various conditions comprising eye allergies, conjunctivitis, and dry eye. The Ophthalmic Pharmaceuticals segment offers proprietary and generic pharmaceutical products for post-operative treatments, as well as for the treatment of eye conditions, such as glaucoma, ocular hypertension, and retinal diseases; and contact lenses for therapeutic use. The Surgical segment provides tools and technologies for the treatment of cataracts, and vitreous and retinal eye conditions; and intraocular lenses and delivery systems, phacoemulsification equipment, and other surgical instruments and devices. The company was founded in 1853 and is headquartered in Vaughan, Canada.
How the Company Makes MoneyBausch + Lomb makes money through a diversified revenue model centered around its key product categories. The Vision Care segment generates revenue from the sale of contact lenses and lens care products, catering to both individual consumers and eye care professionals. The Pharmaceuticals segment includes prescription and over-the-counter products for the treatment of various eye conditions, contributing significantly to the company's earnings. The Surgical segment derives its income from the sale of ophthalmic surgical devices and instruments, which are used in procedures such as cataract surgery. Bausch + Lomb's revenue streams are supported by its global distribution network and strategic partnerships with healthcare providers and institutions, enabling it to maintain a strong presence in the eye health market.

Bausch + Lomb Corporation Key Performance Indicators (KPIs)

Any
Any
Organic Revenue Growth by Segment
Organic Revenue Growth by Segment
Measures revenue growth from existing operations, excluding acquisitions or currency effects, to reveal true performance and demand within each segment.
Chart InsightsBausch + Lomb's Vision Care segment shows consistent growth, bolstered by strong performance in contact lenses and dry eye products, as highlighted in the earnings call. Despite a temporary dip, the Surgical segment's potential is evident, excluding the enVista recall impact. Pharmaceuticals face challenges, particularly in U.S. Generics, but strategic focus on branded Rx offers a growth avenue. The company's raised financial guidance and successful debt refinancing underscore confidence in overcoming current hurdles and driving sustainable growth.
Data provided by:Main Street Data

Bausch + Lomb Corporation Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with notable achievements in contact lens growth, dry eye treatments, and increased revenue guidance, but also faced challenges from the enVista recall and U.S. Generics decline. The sentiment is neutral as highlights and lowlights are balanced.
Q2-2025 Updates
Positive Updates
Strong Contact Lens Growth
Contact lens revenue growth was 7%, with the Daily SiHy franchise growing by 36% in Q2. The U.S. market saw 11% growth, EMEA 11%, LatAm 25%, Japan 3%, and China 7%.
Dry Eye Portfolio Success
Dry eye portfolio delivered $115 million in revenue in Q2, representing 19% growth. ARTELAC grew by 34% and Blink by 13%.
Prescription Dry Eye Leadership
MIEBO delivered $63 million of revenue in Q2, representing sequential growth of 11% and year-over-year growth of 50%. XIIDRA delivered $82 million in revenue with 12% year-over-year prescription growth.
Increased Revenue Guidance
Revenue guidance for 2025 has been raised to a range of $5.05 billion to $5.15 billion, reflecting constant currency growth of approximately 5% to 7%.
Successful Debt Refinancing
Completed a refinancing of $3.1 billion of debt, extending maturities to 2031 with minimal impact on interest expense.
Negative Updates
Impact of enVista Recall
The enVista recall impacted Surgical segment growth, which would have been 15% without the recall. The recall also affected the Implantables and Equipment business.
U.S. Generics Decline
The U.S. Generics business declined 29% in the quarter, impacting overall revenue growth.
Decreased Gross Margin
Adjusted gross margin for Q2 was 60.6%, a decrease of 130 basis points year-over-year due to the enVista recall and product mix.
Company Guidance
During Bausch + Lomb's second quarter 2025 earnings call, the company highlighted several key metrics and provided updated financial guidance. The company reported a total revenue of $1.278 billion, reflecting a year-over-year growth of 3%, with Vision Care revenue up by 6% to $753 million and the Surgical segment growing by 1% to $216 million, despite a $29 million impact from the enVista recall. Excluding this recall, the Surgical segment would have grown by 15%. The Pharmaceutical segment saw a decline of 1%, attributed to underperformance in the U.S. generic business, which declined by 29%. Adjusted gross margin was reported at 60.6%, a 130 basis point decrease from the previous year. The company raised its full-year revenue guidance to a range of $5.05 billion to $5.15 billion, representing constant currency growth of 5% to 7%, and increased its adjusted EBITDA guidance to between $860 million and $910 million. The company emphasized a strong focus on execution, demonstrating resilience against unexpected challenges, and outlined plans for continued innovation and strategic growth, with a commitment to operational excellence and market expansion.

Bausch + Lomb Corporation Financial Statement Overview

Summary
Bausch + Lomb Corporation demonstrates mixed financial performance. While revenue growth is positive, persistent net losses and negative profit margins indicate significant profitability challenges. The balance sheet is stable with moderate leverage, but negative returns on equity and weak cash flow generation highlight the need for strategic improvements.
Income Statement
45
Neutral
The income statement shows a mixed performance for Bausch + Lomb Corporation. Over the TTM period, gross profit margin stands at 70.4%, indicating effective cost management. However, the net profit margin is negative at -11.78%, reflecting significant losses. Revenue growth is positive at 2.25%, but profitability remains pressured with negative EBIT and EBITDA margins of 0.74% and 5.16%, respectively. The company needs to address its declining profitability despite revenue growth.
Balance Sheet
50
Neutral
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.77, indicating moderate leverage. Return on equity is negative at -8.93% due to net losses, and the equity ratio is solid at 46.55%. The company has managed to maintain a balanced structure despite increasing liabilities, but negative returns on equity highlight a need for improved profitability.
Cash Flow
40
Negative
Cash flow analysis reveals challenges in cash generation. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -0.32, suggesting insufficient cash flow relative to net losses. The free cash flow to net income ratio is negative, indicating inefficiencies in turning earnings into cash flow. Improvement in operational efficiency is crucial to enhance cash flow performance.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.89B4.77B4.15B3.77B3.77B3.41B
Gross Profit2.92B2.92B2.50B2.25B2.30B2.13B
EBITDA351.00M614.00M512.00M599.00M762.00M739.00M
Net Income-401.00M-317.00M-260.00M15.00M182.00M-17.00M
Balance Sheet
Total Assets13.83B13.47B13.44B11.14B10.82B11.27B
Cash, Cash Equivalents and Short-Term Investments272.00M305.00M331.00M354.00M174.00M238.00M
Total Debt4.96B4.78B4.56B2.44B112.00M101.00M
Total Liabilities7.32B6.92B6.52B4.04B1.42B1.28B
Stockholders Equity6.44B6.47B6.85B7.03B9.33B9.92B
Cash Flow
Free Cash Flow-165.00M-59.00M-198.00M170.00M664.00M263.00M
Operating Cash Flow186.00M232.00M-17.00M345.00M873.00M522.00M
Investing Cash Flow-487.00M-412.00M-2.11B-215.00M-214.00M-256.00M
Financing Cash Flow247.00M178.00M2.08B81.00M-712.00M-232.00M

Bausch + Lomb Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.59
Price Trends
50DMA
14.01
Positive
100DMA
12.97
Positive
200DMA
14.97
Negative
Market Momentum
MACD
0.22
Positive
RSI
55.77
Neutral
STOCH
49.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Positive. The current price of 14.59 is above the 20-day moving average (MA) of 14.37, above the 50-day MA of 14.01, and below the 200-day MA of 14.97, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 49.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLCO.

Bausch + Lomb Corporation Risk Analysis

Bausch + Lomb Corporation disclosed 56 risk factors in its most recent earnings report. Bausch + Lomb Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bausch + Lomb Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$39.68B28.5125.86%0.80%9.84%37.48%
67
Neutral
$12.99B33.055.01%6.35%12.94%
56
Neutral
$1.37B55.81-25.55%-32.59%-667.81%
55
Neutral
$5.16B-4.22%8.81%40.43%
55
Neutral
$2.75B-37.78%4.47%-5.78%-445.83%
54
Neutral
$12.41B136.07-3.30%2.88%-27.41%67.01%
51
Neutral
$7.91B-0.36-41.71%2.23%23.45%-1.86%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BLCO
Bausch + Lomb Corporation
14.59
-1.32
-8.30%
BAX
Baxter International
23.58
-14.51
-38.09%
COO
Cooper Co
68.00
-38.59
-36.20%
XRAY
DENTSPLY SIRONA
14.33
-10.35
-41.94%
RMD
Resmed
273.81
31.05
12.79%
STAA
Staar Surgical
27.78
-3.34
-10.73%

Bausch + Lomb Corporation Corporate Events

Executive/Board Changes
Bausch + Lomb Ends Agreement with Icahn Group
Neutral
Aug 18, 2025

On August 14, 2025, Bausch + Lomb Corporation announced the termination of the Amended and Restated Director Appointment and Nomination Agreement with Carl C. Icahn and his affiliates, following the Icahn Group’s reduced stake in Bausch Health Companies Inc. Consequently, Brett Icahn and Gary Hu resigned from the company’s board of directors. The resignations were not due to any disagreements with the company, and Bausch + Lomb’s CEO expressed gratitude for their contributions over the past three years.

Executive/Board ChangesBusiness Operations and Strategy
Bausch + Lomb Amends CEO Employment Agreement
Neutral
Jul 23, 2025

On July 21, 2025, Bausch + Lomb Corporation amended the employment agreement with CEO Brenton L. Saunders, limiting his severance rights related to the company’s spin-off from Bausch Health Companies Inc. Additionally, the company adjusted the terms of Saunders’ performance stock units, setting a new vesting schedule and performance targets to be achieved by February 23, 2029, which could impact the company’s financial incentives and executive compensation strategy.

Private Placements and Financing
Bausch + Lomb Expands Note Offering to €675 Million
Positive
Jun 18, 2025

On June 18, 2025, Bausch + Lomb Corporation announced an increase in its offering of senior secured floating rate notes to €675 million, up from €600 million, with the proceeds intended to refinance existing loans and credit facilities. The company is also seeking to establish a $2.325 billion new term B loan facility and a new $800 million revolving credit facility, with both expected to close on June 26, 2025, to further strengthen its financial position.

Private Placements and Financing
Bausch + Lomb Launches €600 Million Notes Offering
Neutral
Jun 11, 2025

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company plans to use the proceeds to repay existing borrowings and refinance outstanding loans, with the transactions subject to market conditions. The notes will be guaranteed by Bausch + Lomb and secured by first priority liens, though there is no assurance of successful completion.

Private Placements and Financing
Bausch + Lomb Launches €600M Notes Offering
Neutral
Jun 10, 2025

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company aims to secure a $2.2 billion new term B loan facility and a new $800 million revolving credit facility to refinance existing loans and support general corporate purposes. The transactions, subject to market conditions, are designed to strengthen the company’s financial structure but are not guaranteed to be completed as planned.

Private Placements and Financing
Bausch + Lomb Launches €600 Million Notes Offering
Neutral
Jun 10, 2025

On June 10, 2025, Bausch + Lomb Corporation announced the launch of a €600 million senior secured floating rate notes offering by its subsidiaries, alongside a partial refinancing of its credit agreement. The company plans to use the proceeds to repay existing borrowings and refinance outstanding loans, with the transactions subject to market conditions. The notes will be guaranteed by Bausch + Lomb and secured by first priority liens, though there is no assurance of successful completion.

Executive/Board ChangesShareholder Meetings
Bausch + Lomb Shareholders Approve Executive Compensation
Neutral
May 21, 2025

At the Annual Meeting of Shareholders on May 21, 2025, Bausch + Lomb Corporation‘s shareholders voted on three proposals. The election of directors resulted in the appointment of several individuals to the Board of Directors, who will serve until the 2026 Annual Meeting. Additionally, the shareholders approved the executive compensation on a non-binding advisory basis.

Executive/Board Changes
Bausch + Lomb’s New Board Agreements Announced
Neutral
May 21, 2025

On May 19, 2025, Bausch Health Companies Inc., the majority shareholder of Bausch + Lomb Corporation, entered into letter agreements with the Icahn Group, Paulson Group, and Kavanagh Group. These agreements stipulate that if any of these groups engage in specified actions, they must resign from the boards of both Bausch Health and Bausch + Lomb. The agreements also include provisions for voting on board nominees, aiming to maintain stability in board representation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025